An event will take place on January 25th which will give us new insight into the potential for political defiance of neoliberalism. Unfortunately, not in Egypt.
Greece became a European laboratory for the imposition of neoliberalism on the continent (called “austerity measures”), through pressure from the European Central Bank and the IMF 5 years ago.
The policies were severe and extreme, and the outcome has been equally dramatic.
After about 5 years of neoliberalism, around 1 million people have lost their jobs, youth unemployment is over 50%, one-third of domestic businesses have closed, salaries have dropped about 40%, pensions have been reduced by 50%, the total economy has contracted by one-quarter, child mortality has increased by around 40%, public debt has increased from 130% to 175% of GDP, the healthcare system has collapsed…Greece is in a state of absolute disaster
The majority of people in Greece have rejected the two main political parties due to their advocacy of the neoliberal program, and they are set to now elect a party which promises to completely overturn that program and cancel Greece’s debts. This is similar to what happened in Bolivia and Ecuador several years ago.
This represents the more conventional method of confronting corporate power through traditional grassroots political organizing. If the Syriza party succeeds in the general election, as it is expected to, we await to see the reaction of the multinationals and financial institutions.
I expect the punishment to be drastic